CMA OKs GIG's 5% capital hike via bonus issue

Logo of Gulf Insurance Group (GIG)

The Capital Market Authority (CMA) announced its approval of Gulf Insurance Group’s (GIG) request to increase its capital from SAR 500 million to SAR 525 million by issuing one bonus share for every 20 existing shares held, according to the market regulator’s website.

Shareholders registered with the Security Depository Center (Edaa) at the end of the second trading day after the record date, which will be determined later by the insurer’s board, are eligible for the bonus share distribution.

The CMA stated that the capital hike will be financed by transferring SAR 25 million from the retained earnings account to GIG’s capital. As a result, the number of outstanding shares will rise from 50 million to 52.5 million.

The extraordinary general meeting will be held within six months from the CMA approval date and the company will satisfy all regulatory requirements and applicable laws.

According to data on Argaam, GIG’s board of directors earlier recommended a 5% capital top-up by issuing one bonus share for every 20 existing shares.